Report 2005-115.2 Recommendation 4 Responses
Report 2005-115.2: Department of Insurance: Former Executive Life Insurance Company Policyholders Have Incurred Significant Economic Losses, and Distributions of Funds Have Been Inconsistently Monitored and Reported (Release Date: January 2008)
Recommendation #4 To: Insurance, Department of
In order to ensure that it accurately records distributions in its primary accounting system, and its financial reporting is correct, the CLO should periodically reconcile the distributions reported in its general ledger to its subsidiary databases.
1-Year Agency Response
The commissioner stated that the CLO will continue its practice of reconciling distributions to the Trust Administration System subsidiary databases and to the general ledger, and stated that the CLO has reformatted the financial presentation of the ELIC financial statements and has established separate accounts in the ELIC estate general ledger for each future distribution. (See 2010-406 p. 58)
- Response Date: January 2009
California State Auditor's Assessment of 1-Year Status: Fully Implemented
Agency responses received after June 2013 are posted verbatim.